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Baby Boomers: Here's How Digital Health Tools Can Save You Money -- And Save Your Life

Beth is a general partner with Kleiner Perkins Caufield & Byers, focused on life science and digital health investing.

The digital health revolution could not be arriving at a better time. The U.S. population is getting older, sicker, fatter and more sedentary. As the population ages, and the number of people with serious chronic conditions grows, the financial strains on the economy mount. These are mammoth issues, which defy easy solution.

That said, there are promising new digital health tools that provide cost-effective options for monitoring patients and promoting better health habits. The most successful devices in this market to date play on the “quantified self” trend, tracking how many hours we sleep and how many steps we take every day. But the opportunities run far deeper – and entrepreneurs are actively working on new technologies that are more engaging, utilizing tools that allow consumers to make tracking their health a daily habit.

Boomers have higher rates of chronic disease and lower self-rated health than members of the previous generation at the same age, according to a 2013 JAMA Internal Medicine study. Obesity is significantly higher amongst Boomers (38.7% vs. 29.4%); rates of hypertension, diabetes and hypercholesterolemia also are higher. Boomers exercise less than the previous generation (35.0% vs. 49.9% exercise more than 12 times a month). Half of all Boomers report zero regular physical activity.

Despite the grim outlook, there is reason to believe Baby Boomers could save the system rather than break it. Boomers are far more connected, engaged and tech savvy than previous generations. If you believe digital technology can transform the healthcare industry and that aging adults will have strong financial incentive to adopt it, then there is reason for optimism.

Let’s take a look at a few current digital health products that have the potential to improve healthcare outcomes and patient satisfaction while lowering costs.

Activity and nutrition tracking could help stem the obesity epidemic. A recent Pew survey found that 68% of adults 50 to 64 track their weight, diet, exercise routine or other health indicators, although not necessarily online. Companies like Jawbone* and FitBit have introduced intuitive and accurate activity tracking tools that are being adopted rapidly. In 2013, the number of steps taken by FitBit users reached 2.4 trillion – roughly the distance from the Earth to Saturn – up from 47 billion in 2011. MyFitnessPal*, a calorie-counting app that is growing users at a 50% annual rate, today has 65 million people registered; together they have lost over 100 million pounds.

Telemedicine and advanced sensor technology can improve management of chronic care patients. Baby Boomers want to remain independent for as long as possible. A recent AARP study suggests that 90% want to stay in their homes as they grow older; 82% would prefer to age in place even after they need daily assistance. Digital health technology will help make that possible. A 2010 study conducted at Tufts Medical Center found that the cost of four days of in-hospital heart monitoring (~$25,000) could be reduced by up to 72% through the use of telemedicine and remote monitoring. Savings from using services like Doctor on Demand ($40 per visit) or Teladoc* for regular visits and consultations can be substantial as well.

Cost transparency tools can meaningfully address system-wide financial pressures. Today, the price and quality of care can vary greatly by location. An analysis in the California Bay Area found prices for a CT scan to vary by a factor of 16, and knee arthroscopy by a factor of 10. As aging adults assume increasing responsibility for healthcare costs, they will embrace tools like those developed by Change Healthcare, Castlight Health and ClearCost Health that provide objective cost data to make better, more informed care decisions and save money for both payers and themselves.

So do the aging Boomers represent a beacon of hope – or will they break the bank? The answer will depend, at least partially, on their adoption of digital health tools. With increasing financial incentives and a demonstrated proclivity to embrace engaging, smart and intuitive technology, I am more optimistic than ever before.

Beth Seidenberg, M.D., is a general partner with Kleiner Perkins Caufield & Byers, focused on life science and digital health investing. Before joining the firm in 2005, she worked at a number of pharmaceutical businesses, mostly recently as chief medical officer at Amgen.

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Amazing Jawbone remains in independent company given iWatch rollout and explosion of interest in quantified self. Five reasons why Google is likely to buy Jawbone from May 2013 http://www.lbs.co/blog/5-reasons-why-google-is-likely-to-buy-jawbone